tl;dr

• Neustark is revolutionizing carbon capture and storage in the concrete industry
• Major construction tech players are acquiring payment solutions to streamline cash flow
• Incubators and accelerators may boost funding chances, but building a real business is what matters

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"Neustark might be pioneering the real model - system integration - that will industrialize carbon capture in construction."

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Listen to this episode

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Neustark: Turning Carbon into Concrete Solutions

We've all heard about carbon capture, but what about carbon storage? That's where Neustark comes in. This Swiss company is making waves in the construction industry by focusing on a critical but often overlooked part of the carbon reduction puzzle: storage.

Neustark's approach is beautifully simple. They take captured carbon and inject it into recycled concrete at recycling plants. This process not only stores the carbon but also gives new life to old building materials. It's a win-win for the environment and the construction industry.

What sets Neustark apart isn't some fancy new scientific breakthrough. Instead, they're taking existing technology and making it work at scale. They're the system integrators, the ones who can package this solution in a way that's standardized and repeatable for concrete recycling plants around the world.

This focus on industrialization rather than pure innovation is what caught our attention. It reminds us of the success stories in renewable energy, where the real winners weren't always the ones with the fanciest solar cells, but those who could develop, finance, and build projects efficiently.

The Numbers Game: Carbon Capture at Scale

Let's talk numbers for a second. To hit net-zero targets by 2050, we need to remove about 10 gigatons (that's 10 billion tons) of CO2 from the atmosphere. Neustark is aiming to remove 1 million tons by 2030.

Is that enough? Not by itself, no. But it's a significant step, and more importantly, it's a proven, scalable solution. We need more Neustarks, more companies focusing on the unsexy but crucial work of carbon storage.

Neustark recently closed a €69 million growth equity round led by Decarbonization Partners, a joint venture between BlackRock and Temasek. This is big news, folks. When the world's largest asset managers start pouring money into carbon capture and storage solutions, you know the industry is hitting its stride.

But let's be clear: this isn't just about throwing money at a problem. Neustark has substance. They're not selling pipe dreams or unproven tech. They're offering a practical, implementable solution to a pressing global problem.

The Construction Payment Problem

Speaking of big money moves, let's shift gears to another pressing issue in the construction industry: payments. Trimble, a major player in construction tech, just acquired Flashtrak, a payment compliance platform.

Why is this a big deal? Because cash flow is the lifeblood of construction, and it's often a mess. Think about it: you've got general contractors, subcontractors, suppliers, all waiting to get paid. The longer it takes for money to move, the more working capital gets tied up in the system.

Flashtract helps streamline this process, making it easier for contractors to apply for payments and manage compliance issues like lien waivers. It's not sexy, but it's crucial.

Trimble isn't alone in this space. Autodesk purchased Payapps in January, and Procore acquired Levelset a few years back. All these major construction tech companies are racing to offer comprehensive solutions that cover everything from project management to financial flows.

Why? Because they know that whoever can solve the payment problem in construction will have a massive advantage. It's not just about moving money faster; it's about reducing risk, improving cash flow, and ultimately, keeping more construction companies in business.

With all these big players making moves, you might wonder if there's still room for startups in the construction payment space. The answer is a resounding yes.

Take Build Technologies, for example. They're not tied to any major ERP system, but they're finding success with their own innovative approach to construction payments. Or look at Early Trade, offering white-label solutions for early payment discounts.

The key here is financial innovation. While the big players are focusing on workflow automation, there's still plenty of room for startups to come up with creative financial solutions that can help contractors manage their cash flow better.

The Accelerator Debate: Do They Help?

Now, let's tackle a controversial topic: startup accelerators and incubators. A recent study suggests that startups in private incubators are 70% more likely to secure venture capital, while those in university incubators are twice as likely to obtain government grants and over 50% less likely to fail.

Sounds great, right? Well, not so fast. We need to take a step back and ask: what are we really measuring here?

Getting venture capital isn't a measure of success. Building a profitable, cash-flow positive business is. Selling your company for a tidy sum - that's success. Everything else is just pit stops on the journey.

Don't get us wrong - accelerators can provide value. But for truly great founders, they're not likely to make or break success. The best entrepreneurs will find a way to succeed with or without an accelerator program.

The Danger of the Funding Mirage

There's a real risk in the startup world of chasing funding rounds instead of building real businesses. Some accelerators and VCs can inadvertently encourage this behavior, training founders to craft compelling narratives rather than focus on product-market fit and sustainable growth.

We call this the "pretend and extend" approach. It might help you raise your next round, but it doesn't necessarily translate into building a great company.

Remember, the vast majority of venture returns come from a tiny fraction of startups. Chasing that unicorn status through accelerator programs and funding rounds isn't a guarantee of success. Building a solid business with real value for customers - that's what matters in the long run.

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Companies Mentioned

Neustark, Trimble, Flashtract, Autodesk, Payapps, Procore, Levelset, Build Technologies, Early Trade

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Keywords

Carbon capture, construction payments, startup accelerators, venture capital, Neustark, Trimble, construction technology